Joint Committee on Revenue
The Massachusetts Health and Hospital Association (MHA), on behalf of our member hospitals, health systems, physician organizations, and allied health care providers, appreciates the opportunity to submit comments in support of SB1606/HB2436, An Act protecting youth from nicotine addiction and HB2485, An Act to direct tobacco tax revenues to reduce tobacco use and its harms.”
MHA, as a member of Tobacco Free Mass., supports a comprehensive approach to taxing tobacco, including a dollar increase on cigarettes, taxing e-cigarette and vape products, and raising the tax on cigars. MHA also supports dedicating a portion of any new tobacco tax revenues to the Massachusetts Tobacco Cessation and Prevention Program (MTCP), the commonwealth’s effective and respected tobacco prevention and cessation program.
MHA supports SB1606/HB2436 as it would tax all tobacco products at a rate that would discourage youth access to tobacco. This legislation does three things to accomplish that goal: it creates an excise tax of 75% of wholesale on e-cigarettes and all vape products; it increases the tax on cigarettes by $1.00 to $4.51; and it increases the tax on cigars from 40% of wholesale to 80% of wholesale.
Taxing tobacco products is a proven strategy for reducing youth tobacco use. E-cigarette and other vape products currently have no excise tax at all. This is inconsistent with the way we treat cigarettes, cigars, and other traditional tobacco products. Taxing vape products at 75% of wholesale will bring them to near parity with cigarettes. Additionally, cigars, which are currently taxed at 40% of wholesale, are still in kids’ price range. Cigars come in many flavors attractive to children and are sold at low prices. Taxing these cheap cigars at the more appropriate rate of 80% of wholesale will help make them less financially appealing to young people.
There is an opportunity and obligation to fund solutions to improve public health when a product is taxed. Increased taxes on nicotine products should lead to an increase in programs that will help people to quit using tobacco - or never start. Therefore, MHA supports HB2485 which dedicates tobacco tax revenue to the Department of Public Health for its tobacco cessation and prevention program. The MCTP is where smokers, especially lower-income smokers, turn for help quitting. There is a critical need for more local tobacco programs to provide community education on vaping and e-cigarette use among our youth, and to support and enforce local laws protecting young people from e-cigarettes use. With increased funding, the MTCP can respond to growing need and expand these successful initiatives. The program can build upon its modest but effective media campaign to grow the awareness of the danger vape products pose to young people.
Thank you for the opportunity to offer testimony on these important matters. If you have any questions or require further information, please contact Michael Sroczynski, MHA's Senior Vice President of Government Advocacy at (781) 262-6055 or msroczynski@mhalink.org